State Court to Hear Exxon Verdict Appeal

Montgomery-Attorneys for the state of Alabama and Exxon Mobil Corp. plan to argue before the state Supreme Court on Tuesday in the appeal of a jury’s verdict that Exxon owes the state $3.6 billion.

The two-hour hearing is scheduled to start at 9 a.m., more than 2 ½ years after Exxon appealed the verdict.

A Montgomery County jury in November 2003 found that Exxon violated lease contracts signed with the state that entitled the company to pump and sell natural gas from Mobile Bay. The jury said Exxon owed the state $102.8 million in additional royalties, plus interest, for gas Exxon pumped from the bay in 1993-2002.

The jury also imposed punitive damages of $11.8 billion on Exxon, finding the company committed fraud.

Montgomery County Circuit Judge Tracey McCooey in March 2004 reduced the punitive-damages award to $3.5 billion, for a total verdict of $3.6 billion, and Exxon appealed to the Alabama Supreme Court.

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